Fosun announced the decision in a statement on July 27, explaining it has agreed with Gland founders and majority shareholders KKR to complete the deal by September 26 at the latest.
The Shanghai-based firm confirmed the proposed takeover has been approved by Chinese authorities, the Competition Commission of India (CCI).
Fosun also said India's Foreign Investment Promotion Board (FIPB) has referred the takeover to the Cabinet Committee on Economic Affairs of India for further review.
“Shareholders and potential investors of Fosun Pharma and Fosun International should note that the completion of the Acquisition is still subject to the approval of the Cabinet Committee on Economic Affairs of India and the completion of relevant formalities” it said.
Rumoured India block?
Since the announcement a number of reports have suggested the Government is about to block the deal.
On July 31 Reuters reported that Government Ministers have raised objections about the deal, citing unnamed sources familiar with the matter.
The unsubstantiated suggestion – which has been repeated elsewhere – has been denied by India's Finance Ministry, which told Reuters the deal had not yet been discussed by the committee.
KKR declined to comment when contacted by in-Pharmatechnologist and Gland did not respond to a request for information.
A Fosun spokeswoman told us “The acquisition obtained prior approval from relevant PRC authorities, and is pending review and approval from the Cabinet Committee on Economic Affairs of India. Gland Pharma Limited has not received notice on the results of this review.”
Fosun announced it planned to buy Gland last May.
Gland makes injectable drugs, both own-brand medicines and for other firms on a contractual basis. It operates four facilities in India that produce active pharmaceutical ingredients (API) and finished dosage formulations.
The firm is a major supplier of the API heparin to hospitals in India.
Current ownership of Gland is split between its founders and KKR - private equity investor Kohlberg Kravis Roberts (KKR) - which together hold a 96% stake.